Covey Park buys Haynesville, Bossier shale assets in $420-million deal
DALLAS -- Covey Park Gas LLC, a subsidiary of Dallas, Texas-based independent oil and gas company Covey Park Energy LLC, has entered into a Purchase and Sale Agreement with subsidiaries of EP Energy Corporation to purchase all of EP Energy’s assets in the Haynesville and Bossier shales.
The total consideration to be paid is $420,000,000, and the transaction is expected to close in the second quarter of 2016.
The assets, primarily located in Louisiana’s DeSoto and Bossier Parishes, consist of approximately 52,933 gross (34,167 net) acres with fourth-quarter 2015 average production of 113 MMcfd.
Pro forma for the acquisition, Covey Park will own approximately 196,000 gross (137,000 net) acres of leasehold in Texas and Louisiana. Daily net production will increase to approximately 200 MMcfd. Total proved reserves will be approximately 2 Tcf.
